The end of earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how casino operator stocks performed in Q4, starting with PENN Entertainment ( NASDAQ:PENN ) .
Casino operators enjoy limited competition as gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the expression “the house always wins”? However, regulation cuts both ways, and casinos could face the risk of a stroke of the pen that suddenly limits what they can or cannot do and where they can do it. Also, digitalization is a game changer, pun intended. Whether it’s online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to bet anywhere on demand.
Shares of the 8 casino operators we track reported a weaker Q4; earnings on average beat analysts’ consensus estimates by 1.1% Stocks were under pressure as inflation (despite slowing) makes their long-term earnings less valuable, but casino operator stocks held up better than others, with prices of shares rose 4.2% on average from previous earnings results.
Weakest Q4: PENN Entertainment (NASDAQ:PENN)
Founded in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting and entertainment venues.
PENN Entertainment reported revenue of $1.40 billion, down 12% year-over-year, below analysts’ expectations of 9%. It was a weak quarter for the company, missing analysts’ revenue estimates and missing analysts’ operating margin estimates.
Jay Snowden, CEO and President, said: “PENN delivered another quarter of solid performance at the property level while continuing to invest in our high-growth digital business, which we believe will create significant long-term shareholder value. Our retail performance reflects strong customer demand and well-executed strategies across our portfolio. In our interactive segment, ESPN BET attracted significantly more first-time depositors (FTDs) than we expected, resulting in higher-than-expected promotional spend. Our successful launch led to a significant expansion of key performance indicators (KPIs), including monthly active users (MAUs), processing and cash handling. Importantly, strong early retention and steady user acquisition led to steady monthly cash increases as our promotional spend began to normalize entering 2024. ESPN BET also engaged mass-market sports fans, highlighting the potential to expand attractiveness of sports betting and growth of the general market. This foundation sets the stage for continued growth and market share gains as we introduce additional product enhancements and deeper integrations into ESPN’s media ecosystem.
PENN Entertainment underperformed analysts’ estimates for the entire group. Shares fell 21.7% after the results and are currently trading at $17.6.
Read our full report on PENN Entertainment here, it’s free.
Best Q4: Wynn Resorts (NASDAQ: WYNN )
Founded by the former CEO of Mirage Resorts, Wynn Resorts (NASDAQ: WYNN) is a global developer and operator of high-end hotels and casinos known for its luxury properties and first-class guest services.
Wynn Resorts reported revenue of $1.84 billion, up 83.1% year-over-year, beating analysts’ expectations by 5.9%. It was a stunning quarter for the company, with an impressive beat on analysts’ revenue estimates and an impressive beat on analysts’ operating margin estimates.
Wynn Resorts achieved the fastest revenue growth among its peers. Shares rose 5.2% after the results and are currently trading at $105.01.
Is Now the Time to Buy Wynn Resorts? Access our full analysis of earnings results here, it’s free.
Bally’s (NYSE:BALY)
Headquartered in Providence, Rhode Island, Bally’s Corporation (NYSE:BALY) is a diversified global casino and entertainment company that owns and operates casinos, resorts and online gaming platforms.
Bally’s reported revenue of $611.7 million, up 6.1% year-over-year, missing analysts’ expectations of 1.8%. It was a weak quarter for the company, missing analysts’ operating margin estimates and missing analysts’ earnings estimates.
Shares rose 32.7% after the results and are currently trading at $13.67.
Read our full analysis of Bally’s results here.
Caesars Entertainment (NASDAQ:CZR)
Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company that operates multiple casinos, hotels, and resort properties.
Caesars Entertainment reported revenue of $2.83 billion, flat on a year-over-year basis, missing analysts’ expectations by 1.3%. It was a weak quarter for the company, missing analysts’ earnings estimates and missing analysts’ operating margin estimates.
Shares rose 5.5% after the results and are currently trading at $43.96.
Read our full, actionable report on Caesars Entertainment here, it’s free.
Golden Entertainment (NASDAQ:GDEN)
Founded in 2001, Golden Entertainment (NASDAQ:GDEN) is a gaming company operating casinos, taverns and distributed gaming platforms.
Golden Entertainment reported revenue of $230.7 million, down 17.5% year over year, below analysts’ expectations of 1.4%. It was a weak quarter for the company, missing analysts’ operating margin estimates and missing analysts’ earnings estimates.
Golden Entertainment had the slowest revenue growth among its peers. Shares fell 4.6% after the results and are currently trading at $35.32.
Read our full, actionable report on Golden Entertainment here, it’s free.
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